What's boosting the BHP share price today?

BHP shares are edging higher today, alongside the materials sector.

| More on:
Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • BHP shares are extending gains today 
  • Materials shares are leading the way on Australian markets today with ongoing price-pressures at play
  • In the past 12 months, the BHP share price has surged 12%

Shares in BHP Group Ltd (ASX: BHP) are walking higher today and are now trading 1.3% in the green at $53.18 apiece.

Today's jump takes the gains for the miner for the past six months to 36%. Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) has jumped just over 2.5%.

TradingView Chart

What's up with the BHP share price?

There's been nothing out of BHP's camp today attributable to its share price gain. However, the S&P/ASX 200 Materials Index (ASX: XMJ) has jumped 11% in the past month, making it a leading sector.

In fact, BHP's share price tends to track the materials index very closely, as shown on the chart below for the past six months.

With the materials index roaring higher in 2022, BHP is following suit in remarkably similar fashion.

So with a gain in the sector today, it's not surprising to see a corresponding gain in the BHP's share price.

TradingView Chart

Aside from that, shares of Australian iron ore miners are set to surge "after Chinese data showed the need for more stimulus to offset economic headwinds", Bloomberg News reports today.

"China's economy grew faster than expected in the first quarter, but activity data for March pointed to rising pressure as the country fights Covid outbreaks," it said.

This could be a bullish sign as traders already begin to place wagers on the chance of more monetary stimulus coming out of China, it says.

Eight analysts are saying to buy BHP right now, with 13 at a hold and four saying to sell, according to Bloomberg data.

The consensus price target is $48.87 per share from this list.

In the past 12 months, the BHP share price has surged 12%. It has also gained 25% this year to date. That's on the back of a 15% jump in the past month.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors ended up snatching defeat from the jaws of victory today.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Clarity, Omni Bridgeway, Santana Minerals, and Vulcan shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 44%

Investors are sending the ASX All Ords stock racing higher today. But why?

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finally caught a break this Tuesday.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Gainers

Why Novonix, PEXA, Tamboran Resources, and Westgold shares are storming higher

These shares are having a good time on Tuesday. Let's find out what's happening.

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

The markets endured a rough start to the week this Monday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why 4DMedical, Brainchip, Meridian, and SCEE shares are rising today

These shares are having a strong start to the week. But why?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares had a rough end to the trading week this Friday.

Read more »